Merko Ehitus (MRK1T) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was EUR 149.9 million, down 10.7% year-over-year; Q2 revenue increased 12.2% to EUR 92.7 million compared to Q2 2025.

• Net profit for H1 2026 was EUR 12.8 million, a 41% decrease year-over-year; Q2 net profit was EUR 8.5 million.

• Secured order book reached a record EUR 835.7 million as of June 30, 2026, up 88% year-over-year.

• Construction input prices rose sharply, with no signs of easing due to ongoing geopolitical tensions and inflation.

• Activity increased in both construction services and real estate development segments in Q2 2026.

Financial highlights

• H1 2026 revenue: EUR 149.9 million (H1 2025: EUR 167.9 million); Q2 2026 revenue: EUR 92.7 million (Q2 2025: EUR 82.6 million).

• H1 2026 net profit: EUR 12.8 million (H1 2025: EUR 21.7 million); Q2 2026 net profit: EUR 8.5 million (Q2 2025: EUR 11.2 million).

• Gross profit margin for H1 2026: 11.6% (H1 2025: 17.3%).

• EBITDA for H1 2026: EUR 10.3 million (H1 2025: EUR 20.1 million).

• Cash and cash equivalents at period end: EUR 39.6 million; equity: EUR 251.1 million (57.4% of total assets).

Outlook and guidance

• Construction price indices are expected to remain high or increase further due to persistent inflation and geopolitical risks.

• Public sector and defence-related projects are expected to drive future growth, while private sector demand remains cautious.

• Demand for affordable housing is rising, with stable market volume for new developments anticipated in 2026.